2025 Valero Report on Guiding Principles - Flipbook - Page 10
Low-Carbon Innovation
The world is calling for low-carbon alternatives…Valero keeps answering
the call!
For Valero, investments in low-carbon fuels that began in 2009 have provided an advantage for the company to
capture market opportunities. As of December 31, 2024, we have invested $5.8 billion in our low-carbon businesses.
Our low-carbon growth projects have been held to the same minimum after-tax IRR hurdle rate as our re昀椀ning growth
projects, and have created value for our stockholders and lowered GHG emissions in the transportation sector.
Sustainable Aviation
Fuel (SAF)
Made with feedstocks used in
the renewable diesel process,
synthetic paraf昀椀nic kerosene
(SPK), or neat SAF, is a nonpetroleum-based fuel. Blending
SPK and traditional jet fuel results
in blended SAF, and current
fuel speci昀椀cations allow SPK
to be blended up to 50%7 with
traditional jet fuel for use in an
aircraft. Blended SAF is a dropin fuel for existing aircraft and
infrastructure.
Our large-scale SAF production
project at the Port Arthur, Texas
plant was successfully completed
in the fourth quarter of 2024 and is
now fully operational. The project
provides the plant the optionality
to upgrade approximately
50% of its current 470 million
gallon renewable diesel annual
production capacity to neat SAF.
Neat SAF can lower life cycle GHG
emissions by up to 80%, 2 when
compared with conventional jet
fuel.
Alcohol-to-Jet (ATJ)
An alternative pathway for
producing SAF is ATJ. With an
abundant supply of ethanol,
carbon sequestration projects may
provide a competitive advantage
for ATJ production, as the carbon
intensity of ethanol is expected to
decrease by more than 40% with
carbon sequestration.
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Recently, Delta further committed to scaling SAF use by securing supply
from Valero into several U.S. locations in 2025.
World Fuel and DHL announced a new supply agreement with Valero for
the delivery of approximately 60 million gallons of blended SAF to Miami
International airport over a two-year period. The collaboration between DHL
and World Fuel demonstrates the drop-in applicability of SAF using existing
jet fuel infrastructure and supply chains.
In 2024, Southwest Airlines announced a SAF supply agreement with
Valero Marketing and Supply Company to bring SAF to Chicago Midway
International Airport, giving Southwest the right to purchase up to
approximately 25 million gallons of neat SAF over the term of the agreement.
In February 2025, Avfuel Corporation, a leading independent
supplier of aviation fuel and services, announced that the
supply of Valero’s SAF will be expanded with terminals in New
Jersey, Texas and Florida.
American Airlines executed a supply agreement
with Valero to take delivery of a minimum of 5 million
gallons of SAF at O’Hare International Airport in
Chicago starting in June 2025.
Cargolux and AIT Worldwide Logistics, in collaboration with Microsoft,
signed an agreement for the transportation of Microsoft server racks. The
partnership will result in a saving of 66,000 tonnes of CO2e over three years,
between 2025 and 2027. The SAF is produced and delivered by Valero to
Cargolux's fuel inventory at George Bush Intercontinental Airport in Houston.
